1. United States Foreign Military Fund Execution in Bulgaria Defense Security Cooperation Agency

2. Overview Definition of Security Cooperation Definition of Security Cooperation U.S. Security Cooperation Programs U.S. Security Cooperation Programs U.S. Security Assistance—as a subset of Security Cooperation U.S. Security Assistance—as a subset of Security Cooperation Foreign Military Sales Process Foreign Military Sales Process Foreign Military Fund Program in Bulgaria Foreign Military Fund Program in Bulgaria

3. US Definition of Security Cooperation All US Department of Defense interactions with foreign defense establishments to build defense relationships which promote specific U.S. security interests, develop allied and friendly military capabilities for self-defense and multinational operations, and provide U.S. forces with peacetime and contingency access to a host nation. All US Department of Defense interactions with foreign defense establishments to build defense relationships which promote specific U.S. security interests, develop allied and friendly military capabilities for self-defense and multinational operations, and provide U.S. forces with peacetime and contingency access to a host nation.

4. Security Cooperation Programs Combined Operations (US operations with other countries) Combined Operations (US operations with other countries) Counter-Drug Support Counter-Drug Support Acquisition and Cross Servicing Support Acquisition and Cross Servicing Support Warsaw Pact Initiative Warsaw Pact Initiative Global Peace Operations Initiative Global Peace Operations Initiative Train and Equip Afgh and Iraq Security Forces Train and Equip Afgh and Iraq Security Forces Support of Coalition Forces in Combined Operations Support of Coalition Forces in Combined Operations Reimbursement to Countries of US Expense Reimbursement to Countries of US Expense Component Commander Initiative Fund Component Commander Initiative Fund Grant Excess Defense Articles for Afgh and Iraq Grant Excess Defense Articles for Afgh and Iraq Security and Stability Assistance Security and Stability Assistance Building Partner Capacity for Foreign Militaries Building Partner Capacity for Foreign Militaries Former Soviet Union Threat Reduction Account Former Soviet Union Threat Reduction Account

5. Combined Exercises Combined Exercises Joint Combined Exercise Training Joint Combined Exercise Training Exercise Related Construction Exercise Related Construction Developing Country Combined Exercise Program Developing Country Combined Exercise Program Defense Health Program Defense Health Program Combined Intelligence Operations Combined Intelligence Operations International Armaments Cooperation International Armaments Cooperation Information Exchange Program Information Exchange Program Exchange of Engineers and Scientist Exchange of Engineers and Scientist Foreign Comparative Testing Foreign Comparative Testing Cooperative Research, Development, Test, Evaluation and Production Cooperative Research, Development, Test, Evaluation and Production No-cost Equipment Loans No-cost Equipment Loans Arrow Missile Arrow Missile Security Cooperation Programs

6. International Training and Education International Training and Education Department of Defense Regional Centers of Strategic Study Department of Defense Regional Centers of Strategic Study Regional Defense Combating Terrorism Fellowship Program Regional Defense Combating Terrorism Fellowship Program Senior War College Senior War College Military Academy Exchanges Military Academy Exchanges Professional Military Education Student Exchange Professional Military Education Student Exchange Flight Student Exchanges Flight Student Exchanges Aviation Leadership Program Aviation Leadership Program Latin American Training Waiver Latin American Training Waiver Security Cooperation Programs

7. Humanitarian Assistance and Mine Action Programs Humanitarian Assistance and Mine Action Programs Humanitarian and Civic Action during Military Operations Humanitarian and Civic Action during Military Operations Humanitarian Transportation Assistance Humanitarian Transportation Assistance Foreign Disaster Relief Foreign Disaster Relief Humanitarian Daily Rations Humanitarian Daily Rations Excess Property Humanitarian Assistance Excess Property Humanitarian Assistance Humanitarian Demining Assistance Humanitarian Demining Assistance Commanders’ Emergency Response Program Commanders’ Emergency Response Program Military-to-Military Contact Program Military-to-Military Contact Program Traditional Combatant Commander Activities Traditional Combatant Commander Activities Developing Country Attendance at Bi-lateral Meetings Developing Country Attendance at Bi-lateral Meetings State Partnership Program State Partnership Program Defense Personnel Exchange Program Defense Personnel Exchange Program Security Cooperation Programs

8. Security Assistance Security Assistance has its roots in the US Revolutionary War Security Assistance has its roots in the US Revolutionary War Institutionalized during WWII Institutionalized during WWII Advances US interest in a global environment Advances US interest in a global environment Security Assistance is founded in public law Security Assistance is founded in public law Eleven Different Programs Eleven Different Programs Controlled by the Department of State but administered and executed by the Department of Defense Controlled by the Department of State but administered and executed by the Department of Defense

9. Security Assistance Programs Foreign Military Sales (FMS) Foreign Military Sales (FMS) Program which eligible foreign governments purchase defense articles, services and training from the U.S. Program which eligible foreign governments purchase defense articles, services and training from the U.S. Purchasing government pays all cost associated with the sale Purchasing government pays all cost associated with the sale Fiscal Year 2008 estimated 80 countries and international organizations would participate in FY 08 FMS program totaling estimated sales of $17 Billion. Fiscal Year 2008 estimated 80 countries and international organizations would participate in FY 08 FMS program totaling estimated sales of $17 Billion. Foreign Military Financing (FMF) Foreign Military Financing (FMF) Congressionally funded grants and loans which enable eligible foreign governments to purchase U.S. defense articles, services, and training through either FMS or direct Commercial Sales channels Congressionally funded grants and loans which enable eligible foreign governments to purchase U.S. defense articles, services, and training through either FMS or direct Commercial Sales channels The initial FMF requests for FY 2007 and 2008 were almost $5 Billion The initial FMF requests for FY 2007 and 2008 were almost $5 Billion International Military Education and Training (IMET) International Military Education and Training (IMET) Provides grant financial assistance for training in the U.S. to selected foreign military and related civilian personnel Provides grant financial assistance for training in the U.S. to selected foreign military and related civilian personnel FY 2007 11,000+ IMET students from 100+ countries—IMET budget in FY 2008 was $89.5 Million FY 2007 11,000+ IMET students from 100+ countries—IMET budget in FY 2008 was $89.5 Million

10. Security Assistance Foreign Military Construction Services Foreign Military Construction Services Sales and design/construction services by U.S. to eligible purchasers Sales and design/construction services by U.S. to eligible purchasers Economic Support Fund Economic Support Fund Supports Economic and Political Stability Supports Economic and Political Stability FY 2008 the fund provided $3.3 Billion FY 2008 the fund provided $3.3 Billion Peace Keeping Operations Peace Keeping Operations Funds Egyptian-Israeli peace treaty observers, efforts in Cyprus, Balkans, East Timor, sub-Saharan Africa, Afghanistan and Dafur region Funds Egyptian-Israeli peace treaty observers, efforts in Cyprus, Balkans, East Timor, sub-Saharan Africa, Afghanistan and Dafur region FY08 $221 Million FY08 $221 Million International Narcotics Control and Law Enforcement International Narcotics Control and Law Enforcement FY 08 -- Over $650 Million FY 08 -- Over $650 Million Nonproliferation, Anti-Terrorism, Demining, and Related Programs Nonproliferation, Anti-Terrorism, Demining, and Related Programs FY08 -- Over $464 Million FY08 -- Over $464 Million Direct Commercial Sales Direct Commercial Sales FY08 – Over $17.4 Billion FY08 – Over $17.4 Billion Excess Defense Articles Excess Defense Articles Third Country Transfers Third Country Transfers

11. Security Assistance Organizations Security Assistance Organization Functions Security Assistance Organization Functions President assigns U.S. Military members to Security Assistance Offices inside and under the authority of the Ambassador President assigns U.S. Military members to Security Assistance Offices inside and under the authority of the Ambassador The Security Assistance Office is responsible for the following functions: The Security Assistance Office is responsible for the following functions: Equipment and services case management Equipment and services case management Training management Training management Program monitoring Program monitoring Evaluation/planning of host government’s military capabilities/requirements Evaluation/planning of host government’s military capabilities/requirements Administrative support Administrative support Promoting rationalization, standardization, interoperability, and other defense cooperation measures Promoting rationalization, standardization, interoperability, and other defense cooperation measures Liaison functions exclusive of advisory and training assistance Liaison functions exclusive of advisory and training assistance

12. Foreign Military Sales Process Preliminary Customer determines requirements Customer obtains specific systems information Definition Customer and U.S. exchange technical information Request Customer prepares and submits an letter of request (LOR) for price and availability (P&A) data Customer prepares and submits LOR for an letter of offer and acceptance (LOA) Development of Offer (this process takes 120 days; congressional review is required between day 15-50) Implementing agency (IA) develops LOA data Department of State, Defense Security Cooperation Agency and Congress review the Offer IA Issues LOA to customer Acceptance of Offer (60 days to accept offer) Customer accepts offer Implementation (15 days) Implementation directed Execution Case and line managers order articles/ services/training Articles and services shipped and expended training conducted Reconciliation/Closure (2 years from last delivery)

13. FMF Program in Bulgaria